Dollar Index Finds Strong Resistance At Around 100 Mark; USDINR Gives Up 82 Levels

Published on Jul 20, 2023 17:52

The dollar index is facing critical resistance at 100 mark as the index retreats after attempting a break above the level. Strong selling pressure is witnessed at 100.25 levels as dollar index is retreating after briefly touching the levels for two consecutive days. Easing inflation levels in the US coupled with cooling labor market is reducing bets of an aggressive rate hike that is dragging the dollar lower. Meanwhile, US benchmark treasury yields are also quoting sharply off their recent highs of 4% at 3.78%. Later today, US unemployment claims is expected to provide some clarity on direction. The dollar index that measures the greenback against a basket of currencies is oscillating around 100 mark. USDINR NSE futures extended decline on Thursday and ending the day at 81.96, down 0.2% on the day. In the spot market, the rupee gained 15 paise to close at 81.93 (provisional) against the US dollar, as domestic equity benchmarks scaling all-time high levels and weakness in the American currency overseas boosted investor sentiments. Besides, steady foreign fund inflows into domestic capital markets also supported the local unit.